What is TPS?
The number of transactions a blockchain network can process every second is known as Transactions Per Second (TPS).
How TPS is calculated?
TPS is a function of three distinct measurements, block size, transaction size, and block time.
TPS = ((block size / transaction size) / block time)
What is the importance of TPS?
TPS is used to measure the networkâs speed and scalability. The user experience of blockchain technology highly depends on TPS. A scalable blockchain must meet pick demand while maintaining standard security and decentralization.
How TPS can be improved?
A blockchain network can increase TPS by increasing the block size while keeping the other two measurements constant, by decreasing the transaction size while keeping the other two measurements constant, or by decreasing the block time while keeping the other two measurements constant. In most of the networks, block size and transaction size are fixed and to improve TPS, they have the option to decrease the block time.
Block time can be reduced by employing hardware having higher capacity, optimizing the complexity of the smart contracts, changing the protocol behind the consensus mechanism, and incorporating off-chain processing.
Current TPS of some of the famous payment networks
Here are the TPS of some of the famous blockchain networks:
Bitcoin - 7 TPS
Ethereum - 15 TPS
Solana - 65000 TPS
Polygon - 7000 TPS
Avalanche - 4500 TPS
Tron - 2700 TPS
Binance Smart Chain (BSC) - 1400 TPS
Polkadot - 1000 TPS
Cardano - 250 TPS
Dogecoin - 33 TPS
Algorand - 20 TPS
Here are the TPS of famous centralized networks:
Visa - 1700
PayPal - 193
Conclusions
A scalable, user-friendly blockchain must improve its TPS without compromising the security and decentralization of the network to reach mass.
